Category Name - Specify category name exactly the way it's going to appear in the list of categories.

Category Description - Specify category description
exactly the way it's going to appear on categories page. You can either
edit description using Raw mode (Raw HTML code) or use HTML Editor.

Edit HTML button - shows new HTML editor window of
category description. It has 2 tabs: HTML and Code; and Properties
Tool-bar. Source preview is useful if you are working directly with
"raw" HTML text, which gives you precise control over the tags used in
the page. However, by default, you can still work with objects visually.

Category Image - Select an Image by clicking:
to browse contents of your local folders and select an image. When you
press OK button on edit form it will be uploaded to "Images directory"
on FTP. When local image selected, this field will display local image
path like C:\My Images\some_image.jpg. But local image path will be replaced with image name some_image.jpg right after upload. to select some image stored remotely. It's done by browsing contents of FTP folder specified as "Images directory". to open Image Resize Rules window. You can add [+] or delete [-] rules if you need to resize the image.

3. Click Ok to save this entry and to create category, or click cancel to discard this entry.